States likely to reap a Rs 200-bn windfall, courtesy rising oil prices

At a time when fuel prices are scaling new highs, official data from petroleum ministry show that for every one rupee increase in petrol and diesel prices, states earn an additional revenue of around Rs 30 billion on annualised basis. The base price of petrol and diesel—that before the application of state value added tax (VAT)—has increased by approximately Rs 5 and Rs 7 per litre, respectively, since April to date, data from Indian Oil Corporation show. This price jump would translate into additional revenue of about Rs 200 billion in the current financial year, according t.....

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